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March 2025 Edition
Global Pulses Market Softens Amid Policy Shifts
🔥 Market Highlights
The global pulses market faced turbulence in March, triggered by major policy changes from India and China—the two largest pulse consumers. Prices across key pulse varieties declined over the last month:
| Commodity | Price Movement |
| Black Matpe | ↓ 1-2% |
| Desi Chickpeas | ↓ 2-3% |
| Green Lentils | ↓ 2% (Russian) / ↓ 5% (Canadian) |
| Green Peas | ↓ 1% |
| Kabuli Chana | ↓ 2-3% |
| Pigeon Peas | ↓ 2% |
| Yellow Peas | ↓ 6% (Canadian) |
| Red Lentils | ↓ 2-6% |
| Mung Bean | ↑ 8% (Myanmar to China) |
🚨 Key Market Drivers
🇨🇳 China’s 100% Tariff on Canadian Pulses
China imposed a 100% tariff on Canadian pulses as part of its retaliatory measures against US-led tariff actions, impacting Canadian exports. This led to a significant drop in Canadian yellow pea prices (↓6% at $370/MT), while Russian exports to China gained ground (↑6% at $415/MT). Since mid-2024, Russia has replaced Canada as the largest exporter to the Chinese market.
🇮🇳 India’s Policy Changes
India’s policy decisions were another key factor impacting the global pulses market:
- Yellow Peas: Duty-free import extended till May 31, 2025.
- Black Matpe & Pigeon Peas: Duty-free imports extended till March 31, 2026, primarily to address empty stock pipelines.
- Lentils: From April 1, 2025, India will impose:
- 5% import duty.
- 5% Agricultural Infrastructure Fund (AIF) cess.
- Desi Chickpeas: 10% import duty from April 1, 2025; no AIF cess.
🌐 Impact of India’s Policy Changes on Trade
India has imposed these duties to ensure farmers receive remunerative prices for their Rabi (winter) pulses crop. While the trade had been seeking the reintroduction of import duties, there could be mixed reactions regarding the quantum of duty imposed. Industry participants believe that the duties announced on lentils and desi chickpeas may be insufficient to significantly curb imports. Market feedback suggests that sellers are likely to adjust their prices to offset the additional duty, limiting its overall impact.
For Australia, this policy move could present an opportunity. Australian growers, in particular, are expected to benefit from the relatively low duty on chickpea imports. Australia is currently engaged in discussions with India over a potential Free Trade Agreement (FTA). If concluded, the agreement may allow Australian agricultural exports to access the Indian market at preferential tariff rates—potentially half of the standard rate. In such a scenario, the 10 percent duty on desi chickpeas could effectively reduce to 5 percent under a specific import quota of 150,000 tonnes allocated for pulses.
On the lentil front, the low import duty of 5 percent is also seen as favourable for exporters. Canada is expected to benefit from this, although it faces increasing competition from other suppliers, particularly Russia and Australia. The red lentils market is currently witnessing intense competition among these three origins, with prices recently falling below USD 700 per tonne. The prevailing trend indicates continued downward pressure on prices in the near term.
🚢 Freight Market Update
The freight market witnessed a downward trend during March:
- Baltic Exchange Dry Bulk Sea Freight Index:
Declined for the fourth successive session last week, dropping to a fresh low of 1,602 points since March 12. - Panamax Index (Tracks vessels with a capacity of 60,000–70,000 MT, commonly used for grains):
Registered a 0.9 percent increase last week, closing at 1,497 points.
However, on a broader trend basis, the benchmark index recorded a 2.5 percent decline over the week, marking the second consecutive weekly fall in March.
🔮 Market Outlook
The prevailing bearish trend in the global pulses market is expected to persist over the next few weeks. This is largely attributed to the peak arrival of India’s Rabi (winter) pulses harvest, with production estimates for desi chickpeas and black matpe indicating an increase over the previous year.
Additionally, Indian farmers have expanded sowing for the Zaid (pre-monsoon) crop, resulting in higher acreage under pulses. As the world’s leading producer, consumer, and importer of pulses, India continues to set the tone for global price trends. Barring any major weather disruptions, prices are likely to remain range-bound in the near term.
Currency movements have also influenced the market. The US Dollar’s volatility and the relative firmness of the Indian Rupee have contributed to recent price adjustments.
Looking ahead, several factors are expected to impact market dynamics:
- Russian supplies will play a key role, with Moscow receiving approval to export pulses to India.
- Canada’s planting patterns indicate increased acreage for peas, although bean planting has faced some challenges.
- Planting decisions in Brazil and Australia, coupled with diplomatic efforts by the US to push for lower duties and enhanced market access, will continue to shape market sentiment in the coming months.
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